As internet marketing companies become more ubiquitous, one company in Valencia is trying to stay ahead of the game. Scorpion, which started out specializing in building websites for law firms, recently acquired a distant competitor, Driven Local in New York. Now the combined 500-employee company hopes to grow in new industries where it can find clients while maintaining a high level of customer service. Scorpion is a web marketing company that focuses on building company websites and managing digital advertising campaigns. The campaigns may include search engine optimization, online ads on sites like Google and Facebook, managing social media, analytics reporting or online reputation monitoring. Scorpion is no stranger to growth. Last year, the company was ranked 9th on the Business Journal’s Fastest Growing Private Companies List, with 181 percent growth in revenue from 2013 to 2015. Corey Quinn, chief marketing officer at Scorpion, said the acquisition was an organic process. “Driven Local was a competitor of ours and over the years we would bump into them at conferences for different client verticals,” said Quinn. “They had a great company, with lots of happy clients and a great retention rate.” Scorpion and Driven Local first started out as a business partnership. Scorpion provided Driven Local with technologies so it could deliver more sophisticated websites to customers. Kevin Szypula, former chief executive of Driven Local and now chief advertising officer for Scorpion, said the synergy between the two companies was apparent. Driven Local had a history of great client retention and Scorpion brought advanced technologies and market insights. Szypula said he was especially impressed by Scorpion’s discerning attitude when it came to choosing a client. “I like that Scorpion didn’t take on everybody as a client,” said Szypula. “The integration that they do requires understanding of how each vertical works. They are good at knowing the ins and outs, and setting expectations.” The financial terms of the acquisition were not disclosed. Legal history Scorpion originally started out as an internet marketing company that focused on attorneys and law firms. Since then, the company has ventured into different business verticals including health care and home services. With the acquisition of Driven Local the company will move further into the small local franchise market. Lorrie Thomas Ross, chief executive of boutique marketing firm Web Marketing Therapy in Santa Barbara said law firms are a common business target for many small internet marketing companies. “They (lawyers) are extremely busy and quick to sign a contract,” said Ross. “I find it ironic because they can often get stuck in oppressive contracts.” Rather than focusing on contracts, Scorpion approached their clients by emphasizing flexibility. John Shaffery, attorney at Valencia-based Poole & Shaffery retained Scorpion three years ago. “They weren’t looking for any crazy contractual requirement,” said Shaffery. “The flexibility in the contract allowed me to walk away in a short time.” However, Shaffery continued with Scorpion after the company proved to be more responsive and adjustable than his previous web-focused employee. “I wanted certain control over the internal aspects. We are lawyers and we have to be able to update frequently,” said Shaffery. “They made our marketing much more cooperative from a technology standpoint.” Shaffery said even for companies on a B2B model, digital marketing is becoming increasingly important. “I’m surprised myself how it is changing,” said Shaffery. “Five years ago, I would not have bothered and would not have thought businesses would look on social media for lawyers. But now I have the data to back this up.” Niche expansion Quinn from Scorpion said after the company grew from the success in law marketing, it was time to expand into similar niches. “We took the focus on individual law firms and expanded the scope to include businesses that had similar needs,” said Quinn. The company eventually expanded its client focus to serve small businesses that were looking to obtain more local clients. “The type of business we work with now are those that people research on the internet, like plumbers or dentists,” said Quinn. Ross from Web Marketing Therapy said this is a common strategy for internet marketing companies looking to grow. “It comes down to riches and niches,” she said. “There are ton of companies that niche themselves in lawyer marketing and it can get too competitive after a while. But, if they are truly able to offer strong sales staff and strong deliverables, it can be very lucrative to expand.” Since the acquisition, Scorpion has been marketing itself in home services, health care, small business and franchises. Quinn said while the company has no plans to acquire additional companies in the near future, it is looking to expand while focusing on what they have always done best. “Website is the new storefront,” said Quinn. “The likelihood of being a successful company is better with a beautiful website and has all the answers to the questions consumer may have.” Quinn added that the company will continue to work on increasing market share in current verticals and identifying other areas that Scorpion may be well suited for. However, beyond technology and the growing digital ad space, Quinn stressed that good business ultimately means good relationships. “How we focus our business is in our ability to provide results for our clients,” he said. “We are very client focused and service focused. This will naturally result in very happy clients.”
